IOOF Holdings has wrapped up the purchase of ANZ OnePath Pensions and Investments (P&I) business in a deal worth $825m.
The amount paid at closing is lower compared to the original deal value of $950m agreed in 2017 when the transaction was announced.
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The transaction also includes a consideration of nearly $25m, which IOOF previously paid to ANZ for the takeover of the latter’s aligned dealer groups.
ANZ expects the sale to add 20 basis points to its CET1 capital ratio. The deal concludes the bank’s simplification plan of wealth operations that commenced in 2016.
IOOF CEO Renato Mota believes that the P&I deal will significantly add to the firm’s earnings per share.
Mota noted: “The acquisition of P&I will play a key role in the transformation of IOOF into Australia’s leading advice-led wealth management business.
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By GlobalData“In the face of a dynamic and competitive market, scale, economic diversity and business resilience are important contributors to the success of any business transformation.
“The acquisition provides a base from which we can simplify the combined businesses, driving efficiencies and improving outcomes for members, clients and shareholders.”
For six months to December 2019, P&I’s underlying net profit after tax (UNPAT) stood at $42.3m.
The business had funds under administration as well as funds under management of $48.2bn and $26.8bn, respectively, at the end of December 2019.
